Firms Find Thrifty Ways To Hold Holiday Celebrations

On Nov. 9, some 210 Sedgwick James employees and their guests gathered in a ballroom at the Irvine, Calif., Marriott under black, silver, purple and white balloons to toast the holidays.

As the band played top 40 tunes, the group feasted on Caesar salad, chicken Wellington, filet mignon, duchess potatoes and chocolate cake. Some workers accepted awards. Others giggled through dancing and singing contests. And if the get-together -- billed as ``An Evening of Elegance`` -- was held closer to Halloween than Christmas or Hanukkah, well, no one complained.

``We had a great time,`` said Robyn Renner, communications director in the Irvine office of the insurance firm. ``And by having it in November we saved money because hotels charge less then.``

Doing the untraditional is one way companies are keeping that timeworn tradition -- the office Christmas party -- alive in the midst of a recession. Rather than eliminate celebrations, many businesses are scaling back, bringing their parties in-house or trying something new -- and less expensive -- as a way of keeping up spirits during tough times.

``This year, companies are canceling all types of things,`` said Larry Ball, a consultant with Merchants and Manufacturers Association, who advises companies about employee issues. ``Though it`s better to keep them if you can. I don`t know if you can quantify it, and managers tend to be cynical about what you can get out of parties. But they pull workers together and make the company seem more human.``

The challenge this year is to make less seem like more.

Sedgwick James offered free champagne, but kept costs down by limiting the amount of other drinks. Guests received two free drink tickets, instead of the free-flowing wine and beer dispensed at last year`s celebration. The company also charged $25 if people brought their spouses.

Management thought hard about canceling the party after the office laid off nine employees earlier this year, but decided to go ahead.

``A lot of people said, `Why are we having a Christmas party if we`ve laid people off,``` she said. ``But we decided life goes on, at least we`re trying to make life go on.``

Other employers have found themselves in similar positions.

FHP International Corp. in Fountain Valley, Calif., which laid off 60 people at its corporate office in October, considered dropping its Christmas celebration, but decided to cut elsewhere.

This year, however, the company will not be sending its employees Christmas cards. Nor will management pay carolers to come through the office as they have in the past.

Other businesses are bringing their parties in-house. Fountain Valley Regional Hospital and Medical Center, which traditionally had Thanksgiving and Christmas dinners catered for employees, will be preparing its own meals this year.

For larger companies that often don`t have an annual holiday party for everyone, cutbacks will be less obvious.

Plant employees at ITT Cannon in Santa Ana, Calif., typically celebrate with a potluck lunch, and will continue to do so. Lunches for other departments also might be brought in-house, said Sandra Wood, a spokeswoman for the aerospace supplier.

But the company`s main holiday event, a food basket drive to provide meals to 450 families on Christmas Eve, will be held.

LOW-COST ENTERTAINMENT FOR EMPLOYEES

ou can`t afford a lavish shindig for your employees but you want to show them how much you appreciate them. What`s a boss to do? Some suggestions:

-- Have the party at someone`s house and let employees chip in, or have the company underwrite it. It will be more intimate and personal.

-- Get your employees involved in a volunteer effort, such as a food drive or taking toys to children in the hospital. Afterwards host a pizza party or potluck dinner to celebrate the holidays.

-- Ask employees what they would like to do. Maybe a caroling party or December picnic might be more appealing than a formal dinner dance.

-- If you have to postpone the celebration until after the holidays for cost reasons, try to do something simple now. Stuff small stockings with extra personalized company pens, mugs or candy.